MUMBAI: Fixed maturity plans (FMPs), which was the flavour in August as these schemes were offering double-digit returns on maturity, helped the mutual fund industry's assets under management (AUM) to grow modestly last month.

However, liquid and money market funds were the biggest contributors to the industry's total net inflows during the month. On the other hand, income funds recorded their biggest monthly outflow in the last eight months, a report by Crisil Research noted.

During August, month-end AUM grew modestly by 0.7% or Rs 5,270 crore to Rs 7.66 lakh crore in August, data released by the Association of Mutual Funds in India (AMFI), the sector's trade body, showed.

"The rise in AUM was due to net inflows of Rs 23,700 crore in liquid and money market funds garnering the largest share of inflows," a release by Crisil Research noted. "Income funds' AUM fell to Rs 4.20 lakh crore led by outflows of Rs 9,300 crore during the month. This was the third consecutive month of outflows from the category and was the largest monthly outflow since December 2012," the release said. The outflow from this category was due to the recent volatility in the debt market following de facto monetary-tightening measures by the central bank coupled with negative returns from the category, it noted. Equity mutual funds on the other hand recorded inflows worth Rs 4,600 crore during August, compared with outflows of Rs 1,800 crore in July, AMFI data showed.

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Fixed maturity plans (FMPs), which was the flavour in August as these schemes were offering double-digit returns on maturity, helped the mutual fund industry's assets under management (AUM) to grow modestly last month.